Tax Models in the EU: a Cluster Analysis
Authors: Nikolay Velichkov, Kristina Stefanova
Abstract
This paper examines the differences between the various tax systems within the EU. Using a cluster analysis and on the basis of different tax system indicators, three distinct and relatively homogenous models are derived that reflect directly the tax structure and also indirectly its macroeconomic projections. The resulting groups generally include countries with close geographic location and similar traditions, history, and degree of economic development which in itself is a prerequisite for similarities in their tax systems.